Patanjali Foods to be moved out of ASM framework from November 1, say exchanges

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Patanjali Foods, the listed consumer packaged foods arm of Patanjali Ayurveda, would be moved out of the additional surveillance measure (ASM) framework from November 1, as per a circular issued by the stock exchanges on October 31. Apart from Patanjali Foods, a number of other securities including Lakshmi Precision Screws, Reliance Capital, Goenka Diamond and Jewels, Digjam, Sumeet Industries, Sintex Plastics Technology, Future Enterprises, Future Supply Chain Solutions, Eastern Silk Industries, Metalyst Forging and Educomp Solutions would be moved out of the ASM framework, according to the circulars issued by the bourses. Notably, the ASM is an initiative of the Securities and Exchange Board of India (SEBI) to put certain securities under a monitoring framework.

The inclusion of securities under the ASM could be based on parameters such as close to close price variation, client concentration, volume variation and market capitalisation, among others. Exciting news! Mint is now on WhatsApp Channels. Subscribe today by clicking the link and stay updated with the latest financial insights! Click here! Notably, the shortlisting of securities under ASM could be purely on account of market surveillance, and it should not be construed as an adverse action against the concerned company.

Meanwhile, Patanjali Foods had posted a net profit of ₹88 crore in the first quarter of fiscal year 2023-24. This was 64 percent lower as compared to a net profit of ₹264 crore clocked in the year-ago period. However, the company's revenue from operations had risen by around 8 percent on-year to ₹7,767 crore.